A report

On
Brand Audit of Arna Beer in Nepalese Market

Submitted to:
Mr. Pushkar Sharma
Course Facilitator, Strategic Brand Management
School of Management, Tribhuvan University

Submitted by:
Chhuku Darai
Kirti Panthi
Nabin Adhikari
Pramit Sapkota
Sharada Adhikari
MBA 13th Batch, 4th Semester

In partial fulfillment of the requirements for the degree of Master of Business Administration
(MBA)
Kirtipur, Kathmandu
5th February, 2019
 Acknowledgement

This report has been prepared in partial fulfillment of the academic requirements prescribed
by School of Management, Tribhuvan University (SOMTU) for the completion of fourth
semester of MBA curriculum. We would like to express our gratitude towards the Faculty of
Management, SOMTU for offering the subject “Strategic Brand Management”.

We are privileged to prepare this report under the supervision of Mr. Pushkar Sharma, course
facilitator of Strategic Brand Management, School of Management, Tribhuvan University.
We would like to extend our heartiest gratitude towards him for his valuable suggestions,
ideas, and advices for our betterment and improvement and would like to acknowledge his
guidance and mentorship in the entire period of this report preparation.

We would also like to thankHuman Resource Manager of Yeti Brewery Pvt Ltd and
Mr.Anish Timalsina,Brand manager of Arna Beer for their information, support and
guidance.

Further, we would like to give special thanks to all the participants who gave their valuable
time to fill out the survey without which the report would not have been possible. Last but not
the least, we would like to express our heartfelt thanks to our families, friends and seniors for
their continuous encouragement, co-operation and support for the completion of this report.

Thank You

Chhuku Darai

Kirti Panthi

Nabin Adhikari

Pramit Sapkota

Sharada Adhikari

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 Table of content
Acknowledgement..................................................................................................................................i
1. Introduction.......................................................................................................................................1
1.1 Beer in Nepal...............................................................................................................................1
1.2 Arna- the Brand...........................................................................................................................2
1.3 Key dates in Nepal.......................................................................................................................3
2. Brand elements.................................................................................................................................3
2.1 Product........................................................................................................................................4
2.2 Pricing.........................................................................................................................................7
2.3 Place............................................................................................................................................8
2.4 Promotion....................................................................................................................................9
3. Brand Exploratory...........................................................................................................................10
3.1 Consumer’s Knowledge.............................................................................................................10
3.2 CBBE Pyramid..........................................................................................................................11
3.2.1 Brand Salience....................................................................................................................12
3.2.2 Brand Performance.............................................................................................................12
3.2.3 Brand Judgment..................................................................................................................12
3.2.4 Brand Feelings....................................................................................................................13
3.2.5 Brand Image.......................................................................................................................13
3.2.6 Brand Resonance................................................................................................................13
4. Competitor Analysis........................................................................................................................14
4.1 Competitor Brands from its own Brewery.................................................................................16
4.2 Competitor Brands from other Breweries..................................................................................17
4.3 Competition from Imported Brands...........................................................................................18
5. Strategic Recommendation..............................................................................................................19
References...........................................................................................................................................21
Appendix.............................................................................................................................................22

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1. Introduction
“Whoever drinks beer, he is quick to sleep; whoever sleeps long, does not sin; whoever does
not sin, enters Heaven! Thus, let us drink beer!”- Martin Luther. Beer is one of the oldest and
most consumed alcoholic drinks in the world. It is also the third most popular drink after
water and tea. Beer is brewed from cereal grains—most commonly from malted barley,
though wheat, maize (corn), and rice are also used. During the brewing
process, fermentation of the starch sugars in the wort produces ethanol and carbonation in
the resulting beer. Most modern beer is brewed with hops, which add bitterness and other
flavors and act as a natural preservative and stabilizing agent. Other flavoring agents such
as gruit, herbs, or fruits may be included or used instead of hops. 
The existence of beer dates back to at least the 5th millennium BC in Iran, and was recorded
in the written history of ancient Egypt and Mesopotamia and spread throughout the world. It
is possible that beer-like beverages were independently developed throughout the world soon
after a tribe or culture had domesticated cereal. It was consumed daily by all social classes for
pleasure in the northern and eastern parts of Europe in Middle age. During industrial
revolution, following significant improvements in the efficiency of the steam engine in 1765,
industrialization of beer became a reality. Further innovations in the brewing process came
about with the introduction of the thermometer in 1760 and hydrometer in 1770, which
allowed brewers to increase efficiency and attenuation.

1.1 Beer in Nepal

United Breweries Nepal Pvt. Ltd, formerly known as Nepal Brewery Pvt. Ltd was
incorporated in January 1966, under the Company Act 1964 in Hetauda Industrial District,
Hetauda. In 1972, the construction of beer factory and the installation of brewing plant and
machinery started. At the time, Star Beer, the product of Nepal Brewery was the first beer in
Nepal which was brewed with German technology. Established as a joint collaboration
between leading Nepali business house (Khetan Group) and the Danish multinational
company Carlsberg A/S in 1989, Gorkha Brewery Private Limited was and is one of the
largest single foreign investments in Nepal. Registered in the year 1986, the company also
started Brewing and Marketing Sam Miguel beer on the license agreement with the San
Miguel Brewing International Limited, Philippines since 2004. The first international brand
beer to be introduced in Nepal was Tuborg which was launched in May 1990, followed by

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Carlsberg in 1995. Gorkha Brewery is the most dominant brewery in Nepal, owning a lion’s
share of the Nepali beer market. According to Carlsberg Group’s 2018 annual report—
Carlsberg Group owns 90 percent of the brewery—Gorkha controlled a 63 percent share of
the Nepali market. There are a handful of other players, such as CG Breweries, United
Breweries, Yeti Breweries and Himalayan Breweries, but Gorkha is by far the largest,
producing Gorkha, Tuborg, Carlsberg, and San Miguel.

Everest Beer was launched on May 26, 2003, to commemorate the golden jubilee of the
historic ascent of Mt. Everest by Tenzing Norgay Sherpa and Edmund Hilary by Mount
Everest Brewery in Kathmandu. Brewed by Sun Gold Brewery in Nepal, Nepal Ice is a prime
example of a thirst quenching beer, perfect to beat the oppressive heat of long summer days.
Nepal’s one and only Kölsch-style beer, Khumbu Kolsch is brewed by the first craft brewery
in the nation, Sherpa Brewery. Yeti Brewery entered the beer market after the introduction of
ARNA beer in the year 2017. Other international beers like Corona, Budweiser, Heineken
and Skol are also available and popular in Nepal.

1.2 Arna- the Brand

Arna Beer is Produced by Yeti Brewery Pvt. Ltd which is an ISO 22000: 2005 certified
private limited company incorporated on January 02,2013 for setting up beer manufacturing
in Chitwan District of Nepal. It comes under four different varieties namely ARNA Light,
ARNA Premium, ARNA 8 and ARNA Strong. Yeti Brewery entered the beer market with the
introduction of two beer brands i.e. Arna Light and Arna Strong in the year 2017. Arna Light
has been stated to be the only light beer of Nepal which conveys the message as “High on
Fun, Low on Calorie”. Similarly, Arna Strong is for those beer enthusiasts who are longing
for strong flavor. Furthermore, Yeti Brewery introduced Arna Premium in the same year
2017. Arna 8 is introduced as the strongest beer of Nepal on December, 2019. Malted barley,
broken rice, sugar, etc are the major raw materials for the company to manufacture beer (Care
Ratings Nepal, 2019). As per the data published by Nepal times, Arna Beer holds the market
share of 10% of the total beer market in Nepal as on 2018 and this share is increasing with
the availability, promotion and increased preferences of the customers.

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1.3 Key dates in Nepal
January 2013 Incorporation of Yeti Brewery Pvt. Ltd
March 2017 Operations Started
April 2017 Launched Arna Light and Arna Strong
November 2017 Launched Arna Premium
December 2019 Launched Arna 8

2. Brand elements
Arna beer, the hallmark in beer brewing standards, is a pure, crisp and clean Himalayan
classic beer. Arna brewed beer in best way than other mild beers that give arna beer pleasant
and natural finish without compromising.

Yeti Brewery introduced new product in Nepal in 2017 which is known as ARNA beer. Yeti
Brewery unveiled four variety of product which are Arna Light, Arna Extra Strong, Arna
Premium and Arna 8. These brand names work as brand elements for the different product
so that people can distinguish Arna beer from other beers in the market.

To communicate with audience, Arna beer has its tagline ‘Beer for Everyone’, targeting
different market segments like people who prefer strong beer, light beer and premium beer.
Along with that, Arna Light has its tagline,‘It’s all time’, Arnapremium, ‘Feel the
difference’, Arna Strong, ‘ChadchaMajjale’, and Arna 8 ‘The strongest beer of Nepal,
ChadchaMajjale’.

With a picture of Arna(wild water buffalo) and a line ‘ Born in Nepal’ in its logo, Yeti
Brewery has chosen perfect logo for Arna beer so as to energize Nepali people more than
international audience.As its visual identity, Arna has cool new look with different color like
blue, orange and red in its packaging. It has also introduced its pull-off-cap in Arna 8 beer
which lends the consumers to enjoy the drink without having to look for bottle opener.

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2.1 Product
Arna beer is brewed by Yeti Brewery Private Limited in Nepal and is their best-selling beer
brand. It is made with international hops and brewed with strong malt, pure water and
barley. It is extremely well balanced and great in taste. It has a great kick and booze effect.
People drink Arna to refresh and rejuvenate themselves during different circumstances. This
beer is made for the ones who like strong beers. Arna beer comes with variety. Arna Light,
Arna Premium, Arna Strong and Arna 8 are currently available all over Nepal.

 Arna Light: It’s Altime!

Introduced in 2017, Arna Light has been stated to be the only light beer of Nepal which
conveys the message as “High on Fun, Low on Calorie”.Arna Light is claimed to be Nepal’s
only low-calorie beer. It is brewed for 25% longer time to remove extra calories and carbs
while preserving the taste and offers 20% less calories and 34% less carbs. It consists of
4.6% volume of alcohol and is available in 650 ML bottle and 500 ML can.

Fig: Arna Light

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  Arna Premium: Feel the Difference

Arna Premium introduced in 2017 which smells great, tastes great and after putting one
down, people will feel great as well. Brewed with the malted barley. European hops and
Clean Himalayan Classic, Arna Premium is the hallmark in beer brewing standard. It
contains 4.6% alcohol.It is available in 650 ML bottle and 500 ML can.

Fig: Arna Premium

 Arna Strong: Chadchamajjale

This extra strong Nepali beer with its rejuvenating taste and exploding flavor was introduced
in 2017. It contains 6.5% alcohol.It is available in 650 ML bottle and 500 ML can. It is
suitable for those who prefer strong beer to drink.

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 Fig: Arna Extra Strong

 Arna Eight: The Strongest beer of Nepal, Chadchamajjale

Arna 8 was introduced as the strongest beer of Nepal on December 2019. Malted barley,
broken rice, sugar, etc are the major raw materials for the company to manufacture
beer.With distinct taste, the Arna 8 has eight percent alcohol content, which is the highest
among all domestic beer brands. It is available in 330ML and 650 ML bottle size with easy
pull-off cap. It sends message Let’s get wild…. responsibly! Afterall, people consume beer
to be wild.

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 Fig: Arna 8

2.2 Pricing
Arna beer has got varieties of products and sets different prices for them. According to the
price listed in online liquor store available in the internet, Arna beer price ranges from Rs 140
to Rs 350. The price should be calculated based on profit margin they get from their
sales.Among the various beers available in the market, Arna Strong has the highest margin of
Rs 40 per bottle followed by Nepal Ice Larger with Rs 35, Carlsberg with profit margin of Rs
30 and Tuborg Classic of Rs 30 per bottle along with Tuborg Gold with Rs 20. Arna beer
covers only 10% total sales of the beer market in Nepal, however, it has managed to cover its
cost through sales of its various product.

The price of Arna beer differs according to the brand and its size of bottle and can.
Brand Price( in Rs.)
Arna Light Bottle 650ML 350
Arna Light Can 500ML 260
Arna Premium Bottle 650ML 290
Arna Premium Can 500ML 250
Arna 8 Bottle 330ML 140
Arna 8 Bottle 650ML 275

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 Arna Extra Strong Bottle 650ML 265
Arna Extra Strong Can 500ML 205
Arna Light 650ML*12 Bottle 3990
Arna Light 500ML *12 Can 2985
Arna Premium 650ML * 12 Bottle 3760
Arna Premium 500ML* 12 Can 2850
Arna 8 330ML*24 Bottle 3260
Arna 8 650ML *12 Bottle 3200
Arna Extra Strong 650ML*12 Bottle 3020
Arna Extra Strong 500ML*12 Can 2335

2.3 Place
Since, Yeti Brewery has unveiled four beers in the Nepali market, it needs to use an
effective distribution channel so that goods and services are placed at the right time andat
the right place to reach to its potential customers. Yeti brewery manufactures its product in
Chitwan district but its products are available in different part of the country which is
possible due to number of intermediaries they use to deliver the product to its customers. Of
course, Arna beer has different dealers located in various parts of the world. It also operates
its sell through indirect channel which includes a wholesaler and a retailer. It sells beers
directly to the wholesaler, then retailer through which, it reaches to its final customer.

Different company follows different distribution strategies like intensive distribution,

selective distribution and exclusive distribution. As of record of Yeti Brewery, it follows
selective distribution that involves selling products at selective outlets in specific location.
They select distributors based on certain criteria like adaptive, economic, control and
relationship with selected intermediaries. Emails and cellphone are widely used to connect
with dealers so that they can place their products for fulfilling customers demand.

Currently,the beers are available in nationwide outlets, hotels and restaurant, pubs, and
clubs. It is now distributed in Big mart, KK mart, Bhatbhateni and Salesberry supermarket.
A company has adopted online marketing as well, where products are sold through different
online retailers like Cheers, Whisky, and so on.

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2.4 Promotion
Promotion is the voice of any company that send out its brand’s message loud and clear to
the audience. During its establishment, there was already an intense competition in beer
market, hence it was necessary for Yeti Brewery to adopt marketing and communication
strategy so as to make people aware about its brand, its product quality and features and
create favorable associations of Arna, so that it can retain higher brand equity in future
prospects.

However, advertisement in TVs and radios related to brewery is not so approval in Nepal, it
has not missed an opportunity to talk about its product on print medias, magazines,
billboards, and short advertisement on social media pages and websites. It creates lively
advertisement related to customer experiences and tries to strive a strong message to its
audience that Arna can be associated and consumed with different food items. Arna beer
owns its separate Facebook official account where many information’s are shared over
million of Facebook users. Arna is active on Instagram, twitter as well as LinkedIn through
which its brand message can be communicated.

To make Arna more livelily in social media campaign, it holds different contest, engagement
posts and games, provides discount and offers to the customers as well as retailers,
wholesalers and online liquor store for promoting Arna products. Along with these activities,
Arna is majorly focused on promoting their products via sponsoring in music fests, concerts,
food festivals, street festivals and many more. They conduct events to attract large potential
customers.

Some of the latest events conducted by Arna Company in the year 2019 are as follows:

 New Year Eve- Dabang 2020 Bollywood Night at Soaltee, Kathmandu

 Light and Shade New Year Party
 Parikrama Live in Nepal!
 Standup Comedy Show
 Unlimited Saturdays, Unlimited Fun at Soaltee Crowne Plaza
 New Year’s Under the Stars
 Weekend Brunch at Hyatt Regency!
 Saili Night
 Kennedia (Spain) at Karma Lounge

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  ARNA Maha Shivaratri Celebration with Adrian Pradhan
 Royal Valentine’s Bash 2019

3. Brand Exploratory

The brand exploratory is the external evaluation of all the factors that are directly related to
the brand. For the purpose of brand audit for Arna Beer, the study has used primary sources
for data collection through 75 online customer survey questionnaires and 30 blind tests
through the convenient sampling method.

3.1 Consumer’s Knowledge

The study conducted structured online questionnaires, with the primary objective of
identifying the range of possible brand associations of Arna in consumer’s minds that could
provide the relative indication of strength, favorability and uniqueness of Arna. The
respondents were found to link the brand with Beer, being almost a synonym for the
beverage, strong, chilled, rugged, friends, fun and youths, which can be subdivided again into
ice-cold beverage, handy bottle, pull off bottle cap, strong brand name, celebrity, Ex Prince
Paras Shah, social gathering, hangouts respectively. However, some negative brand
associations that respondents have linked with the brand are “high alcohol content”,
“hangover”, and “unavailability”. The figure below displays the mental map of Arna.

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 Gatherings

Chilled

Friends
Celebration
Summer

Outdoorsy

Arna
Wild buffalo
Beer
Celebrity

Strong Hangover
Variety
Power
Unavailability
Ex Prince Paras
Shah

Convenient

Chadxa Majjale

Fig: Mental mapping for Arna

3.2 CBBE Pyramid

The CBBE pyramid depicts the differential effect that brand knowledge has on consumer
response to the marketing of the brand through the four steps that represent the identity,
meaning, responses and relationship with a particular brand. The responses analyzed from the
structured questionnaires show the brand equity of Arna as possessed by customer segment.

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3.2.1 Brand Salience
According to the data collected, Tuborg and Nepal Ice were the most known beer brands
which have been followed by Gorkha, Arna and Carlsberg whereas Magna was the least
known brand. 98.67% of the total respondents knew the brand Tuborg and Nepal Ice to be the
top of the mind brand, whereas Gorkha, Arna and Carlsberg took 96% of the total share of
beer in Nepali market respectively that shows the depth and breadth level of brand awareness
for Arna. 77.33% of the consumers have specified the brand name of Arna as the major
triggering factor while purchasing beer. Similarly, 7% of the respondents have ranked Arna
as the first brand of their choice which makes brand salience of Arna quite low and there is
no significant contribution to build brand equity.

3.2.2 Brand Performance

To analyses the functional aspects and the differentiating dimensions of the brand, the brand
performance of Arna was analyzed. From the study conducted, 77.33% of the respondents
took brand name as the major determinant for purchasing beer, followed by quality of the
beer over which 68% of the respondents agreed upon. Furthermore, price, alcohol percent,
availability and volume were the respective factors of consideration. Differentiating factors
for Arna were its strong factor, alcohol content and convenience to drink.

3.2.3 Brand Judgment

The brand performance of Arna was analyzed to understand how well Arna meets customer’s
functional needs and what are the major dimensions that differentiate Arna from other brands.
The study conducted showed that 33.33% of the total respondents take quality of the beer as
key determinant while buying beer followed by price of the beer where 26%of respondents

12
have identified it as the key determinant to purchase. Similarly, tagline Arna means strong
was considered least important factor while purchasing beer followed by brand
advertisement.

3.2.4 Brand Feelings

Brand feelings are associated with the consumer’s emotional responses and reactions to the
brand. Brands are in continuous pursuit of evoking different sets of emotions to target
customers. Of the total respondents who have chosen Arna among the brand under their
consideration set, it was found that 44% of respondents felt excitement evoked by Arna
brand, 43% of respondents felt fun feeling evoked by the brand, followed by chilled and
carefree feelings. Only 12% of the respondents felt daring feeling evoked by the brand.
Considering the use of brand character as wild buffalo, Arna should be able to evoke daring
feeling to the consumers.

3.2.5 Brand Image

Various extrinsic properties of the brand were put onto test and a number of imagery
associations were collected from consumers such as rugged, sincere, excitement, tough,
sophisticated and competent. Similarly, to assign brand personality number of Nepalese
celebrities were assigned to link the brand personality. On the basis of our study, 44% of the
respondents linked the brand personality to excitement, 34.67% of total respondents linked
the brand personality to rugged and tough, followed by sincere, competent and sophisticated
personality in chronological order. While linking the brand to some famous Nepalese
personality, 28% of the total respondents linked the brand personality to Ex Prince Paras
Shah, 17.33% of the respondents linked the brand personality to Rajesh Hamal, followed by
celebrities like Rajendra Khadgi, Ayushman Deshraj, Rishi Dhamala, Bhuwan K.C and
Haribansa Acharya respectively. Use of such imagery associations could be helpful for
brands like Arna to evoke positive brand responses from the target customers.

3.2.6 Brand Resonance

With our efforts to identify the ultimate relationship the customers have with Arna, there
were a number of questions put forwarded to customers to find the relationship level with the
brand. Among the total respondents, 40% of the respondents have referred Arna beer to other
people, similarly 40% of the respondents have never referred Arna beer to other people, 16%
of the respondents responded that they shall never refer Arna beer to others and only 4% of
the respondents said that they would refer Arna on every occasion. The figures clearly
indicate the low sync of the brand within their customers for different reasons.

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Also, only 1.33% of the respondents strongly agreed with their loyalty to Arna, whereas
37.33% of the respondents strongly disagreed that they had any loyalty to the brand. Only
2.67% of the respondents strongly agreed that Arna is the only brand of their
recommendation to others, 12% of the respondents agreed, 36% of the respondents disagreed
and 36% of the respondents strongly disagreed to the statement. Similarly, to the statement of
Arna being their one of the favorite drink, none of the respondents strongly agreed, 12% of
the respondents agreed, 18.67% of the respondents disagreed and 36% of the respondents
strongly disagreed.

Blind Test Analysis Results

1. 26.67% of the respondents correctly identified Arna Strong from brands like Tuborg,
Gorkha Strong and Nepal Ice.
2. 73.33% of the respondents found the taste good.

3. 83.33% of the blind taste respondents recognized the strong taste of high alcohol
content.

4. 60% of the respondents found the taste somehow similar to Nepal Ice, 20% of the
respondents found the taste resemblance to Gorkha whereas the taste of Tuborg was
distinct from all.

4. Competitor Analysis

There are many breweries which supply wide brands of beers all over Nepal. The beer
industry is a lucrative industry and many players have entered the market recently with newer
brands. Yeti Brewery is the brewer of Arna beer in Nepal and there are many other popular
breweries who have been major market players in Nepal. There are several brands of beers
introduced by every brewery which act as strong competitors for Arna. Gorkha brewery as
whole occupies about 70% market share (Rai, 2018).

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It is estimated that the can beer market in Nepal is growing by 15 percent. Strong beers which
have an alcohol volume of eight percent hold 54 percent of the market share. The rest of the
market share is held by mild beers which have five percent alcohol composition. Terai region
is the leading consumer of strong beer whereas mild beers have stronghold in Kathmandu,
Pokhara, Narayanghat, Butwal and Bhairahawa regions. Annually, Nepal imports around
25,000 cases of beer in cans and 350 milliliter bottles that includes Heineken, Warsteiner,
Budweiser, and Corona beers.Hence, Arna faces competition from other brewery brands and
from imported brands.

Table: List of Major Competitor Brewery/Brands to ARNA

Brewery Brands
1. Gorkha Brewery Pvt. Ltd. Tuborg, Turbog Strong, Carlsberg (650 ml),
Carlsberg (330 ml), San Miguel, Gorkha,
Gorkha Strong
2. Sun Gold Brewery (CG) Pvt. Ltd. Nepal Ice, Nepal Ice Strong, Nepal Ice
Natura, Nepal Ice Super Strong, Mustang
3. Himalayan Brewery Ltd. Kathmadu Draught, Iceberg Extra Strong,
Commando Super Strong, Kathmandu
Premium Lager Beer
4. Sherpa Brewery Pvt. Ltd. Khumbu Kolsch, Red Beer

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4.1 Competitor Brands from its own Brewery
United Breweries Limited, one of the leading beer companies in South Asia, in association
with Yeti Brewery, launched their flagship brands, Kingfisher Premium and Kingfisher
Strong in Nepal in late 2018. Kingfisher Strong is brewed from the finest malted barley and
hops. Kingfisher is a young and contemporary beer in Nepal and offers its own peculiar taste.

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Arna does not face much competition from Kingfisher brand in Nepal as the latter brand is
still in the early stage and not much popular in Arna’s target segments. Kingfisher has a
limited promotion and distribution network in Nepal.

4.2 Competitor Brands from other Breweries

There are other popular breweries who have introduced many different beer brands. The main
competitor brands are listed below:

a. Gorkha Breweryand its brands

Gorkha Brewery is the most dominant brewery in Nepal, owning a lion’s share of the Nepali
beer market. According to Carlsberg Group’s 2018 annual report—Carlsberg Group owns 90
percent of the brewery—Gorkha controlled a 63 percent share of the Nepali market. Gorkha
Brewery has introduced Tuborg, Carlsberg, San Miguel and Gorkha beer brands. These
brands are sold separately under different brand identity and thus act as major competitors for
Arna. Carlsberg, Tuborg and San Miguel have their brand identity as foreign brand beer and
have different brand equity. The Gorkha brand beer has its own Nepalese beer identity and is
loved by many in Nepal as well.Gorkha Beer was launched back in May 2006 and the name
is derived from the word, Gurkha, the brave soldiers of Nepal. The price of the beer is Rs 275
per 650ml bottle. The San Miguel brand is not so much popular these days but Tuborg,
Carlsberg and Gorkha brands are available widely. Carlsberg is priced higher than Tuborg
and Gorkha is priced lower than Tuborg. These brands use same distribution channels. The
Tuborg brand occupies the highest shelf space and the sale of Tuborg is more than other
brands.

b. Nepal Ice and its other product lines

Made with natural barley, Nepal Ice is the largest selling beer brand of the Chaudhary
Group’s Sun Gold Brewery. It is available as Nepal Ice strong and Nepal Ice Natura. The
beer costs Rs. 225 per 650ml bottle. It is slightly cheaper than Arna beer. It is also a very
popular and widely available beer brand in Nepal and its wide distribution and availability
gives a direct competition to the Arna brand. It was introduced in 2007 and has been very
popular since then. It is available all over Nepal and even more popular in rural areas of
Nepal where Arna is lacking in distribution. It is available in regular and strong version.

17
Recently they have added Nepal Ice Natura, which is priced higher than Nepal Ice and is
claimed to be brewed using all natural barley. Nepal Ice also uses extensive promotion
strategy and occupies a large shelf space in local distributors. It is also widely available in all
the bars and pubs as well. It is available in cans as well as bottles.

Nepal Ice has mainly sponsored many sports events in Nepal like Nepal Swimming
Association (NSA) championships and Khaptad Gold Cup Football championship. They are
mainly associated with sporting events in order to build the brand identity and equity. The
social media promotion is also done regularly by the brand.

c. Recently introduced craft beer brands like Sherpa Beer

Nepal has long been lager land for beer lovers, with no real other options available. But a
small group of craft brewers are optimistic about the future of micro-brewing in the country.
Sherpa beer is a major new market entrant. Sherpa beer is the first craft beer of Nepal and
unlike most Nepali beers, this beer is brewed using ale yeast, the top-fermenting yeast that
gives a mixture of complex flavors. The Sherpa Himalayan Red Can is priced at Rs. 250
(500ml). They have mainly two sub brands – Khumbu Kolsch beer and Red Beer. The
Khumbu Kolsch is crafted using German brewing process and Kolsch is a particular style of
beer from Germany. The Sherpa Red beer is different from other beer because of its unique
red colour. The Sherpa beer has a strong brand element related to mountains and Sherpa and
thus has a unique identity. The brand was launched in 2015 and has a strong social media
presence. The strategic use of social media has created a buzz among the youths in Nepal.
Sherpa beer is only available in cans and kegs because of the fact that craft beer tastes the
best in cans than in bottles. It is slowly building its equity among the youths.

These newer brands have captured the attention and created a buzz among the youths of
Nepal and have stronger presence in urban areas. They don’t have extensive promotion and
distribution yet but will act as one of the major competitors for the Arna brand in the
upcoming days.

4.3 Competition from Imported Brands

Different international brands from various countries are also consumed in major cities of
Nepal. The imported beers have strong international brand equity, slightly higher price tags
and they are widely available in all the major popular pubs and bars in urban areas. Popular
18
international brands are imported from Scotland, the US and England. Similarly, beer is
imported specially from Spain and England, whereas whiskey is mainly imported from
England, Germany, Australia, among other countries. Wine is imported from Australia and
China. There are many brands which are imported and distributed in the pubs and bars. The
major imported brands are Heineken,Warsteiner, Budweiser and Corona.

Heineken in a very popular brand of beer from Denmark and Budweiser is another popular
brand from USA. Both brands are available in almost all of the major pubs and bars in
Kathmandu, Pokhara and similar cities. The price tag is higher but some beer enthusiasts
prefer this beer over Arna. They are also available in local dealers in the urban areas of
Kathmandu and Pokhara and thus act as competitors for Arna. Similarly, Corona is another
popular beer brand from Mexico and is also available in all the major pubs in the urban areas.
Corona beer is available mainly in the small bottle (pint) size and appeal to those who want to
drink in small quantity with friends. It has a mild taste which is loved by many casual beer
drinkers.

Warsteiner, a premium German beer, is also ready for brewing competition in Nepali beer
market. Although the imported beers have higher price tags, these can appeal to upscale
youth segment and thus can give a direct competition to Arna.

5. Strategic Recommendations
 Keep your customer engaged and fresh

In order for your company to maintain a solid relationship with its customers, it needs to
avoid the boredom and divorce stage. It should aim to remain “fresh” and “exciting” to its
customers. Seek the intersection of your brand authority and cultural trends to best connect
with your market and company should always be able to provide consumer with new variety.
Although Arna has been working majorly on bottle and packaging it should rather focus on
taste of beer that has been lacking.

 Stay true to your brand

Millennials are an extremely loyal generation and will maintain a relationship with a brand as

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long as they continue to receive functional, emotional and participative benefits. Mature
brands are trying to stay relevant with young millennials while staying true to what made
them great. A brand should always maintain that dignity of which brand is known to be. In
case of Arna it is considered to be the strongest beer as the name suggest but as per study it
has not been meeting the customer expectation.

 Understand different segments of the market

Research shows that men, unlike women, would prefer to eat and travel alone. Brands that
target this millennial man mindset are aligning themselves with millennial values that rank
high in the male demographic. Arna must engage their consumers as a broad target audience.
Understand the different segments of the market and how to best reach out to them.

 Enhance the bottle opening experience

The sound generated from opening the bottle provides a level of satisfaction and excitement
to the people drinking it. People tend to open the bottle in so excitement just to create the
sound and it is the company responsibility to provide that satisfaction. In case of Arna and the
research conducted we could see that the opening did not provide that sort of satisfaction in
opening the bottle compared to its competitors.

 Boost values through Social Media

Company must consider engaging with the social media and harnessing the power of brand
storytelling to connect, relate and inspire. Similarly, it can leverage the information
technology by empowering content developers and editors to publish content efficiently,
optimizing for different viewership experiences, and ultimately getting the right messages
delivered to the right audiences on their preferred devices. Arna should be able to transform
its product to sales through social media grabbing the audience

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 References
Rai, S. (2018, February 5). Nepali Times. Retrieved April 19, 2018, from Nepali Times
Website: https://www.nepalitimes.com/here-now/thirsty-for-more/

Retrieved From: http://careratingsnepal.com/wp-content/uploads/2019/09/Yeti-Brewery-

Private-Limited-Ratings-Assigned-to-the-Bank-Facilities.pdf

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 Appendix
Brand Audit Questionnaire.

Hello everyone!
We, the students of School of Management TU, are conducting a Brand Audit on a Beer
Brand. We kindly request you to fill up the form below and help us by providing your
response. Your information will be kept confidential. Thank You!

1. Have you heard of the following beer brands?

1- Yes
2- No
a. Arna
b. Carlsberg
c. Tuborg
d. Gorkha
e. Nepal Ice
f. San Miguel
g. Magna
2. What Nepali Beer Brand comes to your mind when you think of the following
statement.
The extra strong beer available in Nepal.

3. Rank the following beer brands as per your first choice to drink. 1 being the most
favourite and 5 being the least. 
Arna
Tuborg
Carlsberg
Gorkha
Nepal Ice

4. Which factors do you consider while buying beer?

Alcohol percent

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 Price
quality
Availability
Brand name
Volume
5. Have you heard of Arna Beer?
Yes
No
6. How do you come to know about Arna Beer?
Advertisements
Friends and Family
Social Media
Website
Stores
7. What do you think of Arna Brand?
Tasty
Extra strong
Quality
Hangover
Easy to drink
Others
8. With whom do you generally drink Arna Beer?
Colleagues
Friends
Family
Partner
Boss
9. What kings of feelings do Arna Beer evoke?
Fun
Excitement
Courage
Daring
Chilled
Carefree
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10.  If you had to assign the personality of ARNA with one Nepali celebrity, whom
would you choose?
Rajendra Khadgi
Rajesh Hamal
Rishi Dhamala
Haribansha Acharya
Bhuwan KC
Ex Prince Paras Shah
Ayushman DS Joshi

11. If Arna Beer were a person, its personality would be?

Rugged (Tough or outdoorsy)
Sincere (Down-to-earth, honest, cheerful or wholesome)
Sophisticated (Upper class or charming)
Excitement (Daring, Imaginative, Spirited or Up-to-date)
Competent (Reliable, Intelligent or successful)
12. Rank the following factors on a scale of 1 to 7 on the reasons to choose Arna Beer
for consumption 1 for highest and 7 for lowest
Quality of Product
Unique flavour
Quantity
Price
Alcohol content
Advertisements and offers
Because ARNA means Strong!
13.  Have you made anyone of your people drink Arna?
Yes
No
I shall never refer
I am looking for every occasion to refer
14. . Which of the following statements do you agree or disagree with, on a scale of 1 to
5? 1 for strongly disagree and 5 for strongly agree.
I am loyal to the brand ARNA.
ARNA is almost the only brand I recommend others to drink.
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 ARNA is one of my favorite to drink.
I find ARNA extra strong to drink.
15. Your age?
Below 18
19 to 26
Above 26
16. Your gender

Male

Female

Prefer not to say

Thanking you!!

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